Utilizing data-driven marketing allows marketers to optimize marketing processes and strategies to accommodate the changing trends and unique demands of audiences and consumers leveraging data to gain deeper insights to what consumers want.
However, to use data-driven marketing to its full potential, marketers should ensure their strategies are transparent and respect the trust the public places in them. Customers have a clear understanding of their rights towards their personal data. Since consumers are more aware of the value their data provides marketers, they have come to the realisation that value should not only be a one-way traffic. Consumers understand that a value exchange exists between them and marketers.
For value exchange to take place, consumers should be able to trust that the company will keep their data secure as well as use it appropriately. If marketers want to receive consumers’ personal data, then they need to provide something in return, such as a more personalised experience or relevant ads. Any data used should be justifiable, meaning the process of collecting and the purpose for collecting the information should be transparent.
Earning consumer trust is not easy. Trust has been on the decline where, recently, only 44% of consumers trust companies to keep their data secure and use it correctly. Many consumers engage in self-censorship, where they choose the information they share. This limits the information companies receive and, in turn, limits the experience they can provide the user. Other consumers go as far as to provide fake personal data to companies in order to keep their real personal data secure.
The basis of data-driven marketing is to deliver a personalised experience to each consumer. Fake or limited information limits the ability for data-driven marketing to reach its full potential. To earn consumer trust, companies should put measures in place that protect consumer data, such as database encryption as well as limit who has access to the data and what they can do with the data. To ensure privacy, companies should satisfy consumers’ wishes as opposed to only complying with the law. Consumers focus more on whether the companies are listening to them than whether the companies are abiding by the law.
Overall, many marketers base their decisions on the data they acquire. If the data is inaccurate or limited, there’s only so much marketers can do. Hence, marketers and companies should implement the aforementioned tactics to gain trust and proper data insights.